Preheat your oven to 400°F. Line a large baking sheet with parchment paper, then set a wire rack on top. Lightly spray the rack with a neutral cooking oil. Add ¼ cup seasoned Italian breadcrumbs to a large mixing bowl. Pour in the milk, stir with a spoon, and let sit for 2-3 minutes. (This step helps keep the chicken nuggets moist). After a couple minutes, add the garlic powder, onion powder, smoked paprika, ground mustard, salt, and pepper. Stir until well combined.
Add the ground chicken and mix until everything is evenly incorporated.
Use a tablespoon to portion the chicken mixture and form it into nugget shapes. Set aside on a plate. *You might notice the chicken feels a bit sticky at this stage. That’s completely normal. In a medium bowl or shallow plate, combine 1 cup seasoned Italian breadcrumbs, parmesan cheese, and parsley.
In a small bowl, whisk together the egg and 1 teaspoon of water.
Dip each piece of chicken into the egg mixture, coating both sides and letting any excess drip off. Then transfer to the breadcrumb mixture and coat evenly on all sides. Shake off any extra so you’ve got a light, even layer, not a thick, heavy coating.
Place the breaded nuggets on the prepared baking rack. Spray the tops generously with a neutral cooking oil.
Bake for 6-7 minutes. Remove from the oven, then using tongs, flip each nugget, and spray again generously with cooking oil.
Return to the oven and bake for another 6–7 minutes, depending on the size of your nuggets, or until cooked through and golden brown.
Serve with ketchup, BBQ sauce, honey mustard or anything you love!